You Run a Small Business Producing Picture Frames

question 51

Multiple Choice

You run a small business producing picture frames. This month your total cost is $10,000, your variable cost is $5,000, and your output is 5,000 picture frames. Given this information, your:

• A) average variable cost is $2.
• B) average total cost is $3.
• C) average total cost is $1.
• D) average fixed cost is $1.

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Definitions:

Hearing

The sense or process by which sound is perceived, involving the detection of sound vibrations and their conversion into electrical signals that are interpreted by the brain.

Sound Waves

Vibrations that travel through air or another medium and can be heard when they reach a person's or animal's ear.

Middle Ear

Of the mammalian ear, region that contains the eardrum and the tiny bones that transfer sound to the inner ear.

Tiny Bones

Small skeletal elements, often found in the ear, that contribute to functions such as hearing and balance.